SEMICONDUCTOR INDUSTRY IN INDIA :

Importance of Semiconductors:

Semiconductors are essential for all modern electronics and information communication technology products.

They are crucial for automobiles and medical devices. Any shortage causes cascading effects on different sectors of the economy.

India's Current Situation:

India imports $24 billion worth of chips, expected to reach $100 billion by this decade.

The pandemic highlighted vulnerabilities in the global semiconductor supply chain.

Government Initiatives:

The Indian government has introduced a $10 billion package to incentivize semiconductor manufacturing.

A PLI (Production Linked Incentive) scheme worth ₹76,000 crores INR has been launched for semiconductor and display board production.

The Chips to Startup program aims to train 85,000 engineers in VLSI and embedded system design.

Design Incentives - design-linked incentive scheme to nurture 20 domestic companies in semiconductor design.

The goal is to achieve a turnover of more than ₹1500 crores in the next five years.

Challenges in the sector :

Over 90% of global companies have R&D centers in India, but none have established fabrication units due to high capital investment, lack of policies, and

reluctance to share sub-5 nanometer technology.

India faces challenges in setting up fabrication units due to infrastructure constraints, power supply issues, and connectivity to airports and seaports.

India is highly competitive but faces challenges from established players like South Korea and Taiwan.

Issues include market access to intellectual property, patents, and advanced chip technologies.

Potential for Growth:

India has the potential in this sector due to the presence of critical gases and minerals in the global semiconductor supply chain.

Elite academic institutions and a skilled workforce add to India's potential.

India’s large market makes it an attractive destination for electronic design and manufacturing.

Semiconductors and Industrial Revolution:

Semiconductors are at the core of the 4th Industrial Revolution, crucial for technological advancements globally. ​​By focussing in this sector, India can achieve self reliance.

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